The major motivation for writing this work that the author himself works in the renewable energy sector in Hungary, and his first-hand experience has been that the need for information about the utilization of pellets greatly increases especially among the small and medium-size enterprises and on the other hand how little information is yet available. The core question was how the structure of the Hungarian pellet market looks like at present at all, furthermore what are the opportunities for a start up from the point of view of the technology as well as the supply of raw materials? Given that it is statistically almost invisible how pellets are used in Hungary, therefore there is minimum amount of data available I had to initiate my own data collection and to carry out questionnaire survey among the market players. In addition, we have carried out personal interviews at several professional events with prominent local and foreign representatives to draw our conclusions. Our research results show that there are still large gaps in the pellet sector regarding the regulation, education and innovation aspects, on the other hand there seem to be chances at a number of areas for the businesses operating in the Hungarian pellet sector to become international market leaders if they use an appropriate strategy. As a conclusion we can say that to make the best of all of these opportunities if the players of the pellet sector in Hungary find a common platform, and their grassroots initiatives help them start their own development.